Falling kill numbers force factories into price rises across all categories

What a difference a week makes. Seven days ago factory prices for bullocks and heifers were floating between €3.403.45/kg, with only tentative signs that a lift was in the offing.

Today bullocks and heifers are both on €3.50-3.55/kg. While some plants yesterday continued to quote €3.45/kg for both, the game has moved on. And that’s only half the story.

After weeks of low kills, typically 25,000-26,000, factories are at last beginning to feel the pinch.

Numbers now appear to be the governing factor when negotiating a price.

Having managed the marketplace well and dampened farmer expectations for last week, those low kill numbers at last began to force prices across the whole spectrum upward.

Prior to this, cull cow prices had for two weeks in a row been the only strong performer, moving up by around 20-25c/kg.

Bullocks are now on a minimum base of €3.50/ kg, with heifers on €3.55/ kg. More is reported as being possible if both numbers and quality are satisfactory.

Cull cow prices continue their upward trajectory, gaining another 10-20c/kg.

This leaves R-grade cows on €3.00-3.10/kg, with another 5c/kg possible in certain circumstances. O-grades are headed for €2.90/kg and possibly above it if wellfleshed, while your humble hard-milking better P-grade is reported in the €270-2.80/kg ball-park.

Young bulls are also more in demand, with prices for U-grades varying around €3.50-3.60/kg, with R-grades €3.40-3.50 and better Os €3.30-3.40/kg.

While factory bullock and heifer prices are not quite there yet, cull cows and young bulls are at levels not seen since before the lockdown.

Rumours of an increase in factory prices and a general belief among producers that factories could not sustain their grip on prices also saw the mart trade for heavy factory cattle lift last week.

Prices for 650-750kg bullocks rose by 10-15c/kg, while forward stores going for further feeding as opposed to grass finishing also pushed upwards.

All of which feeds into the belief that as we head into the summer months the future may not be as bleak as had been expected.

Meanwhile, the factories are facing pressure over the latest positive news of increased sales from both the domestic and UK retail trades, and rising cattle prices in Britain.

IFA livestock chairman Brendan Golden said Kantar figures for the Irish market in the last four weeks to April 19 show that compared to the same period in 2019, volume beef sales are up 14.9pc, with mince sales up 26.1pc and steak sales up 15.2pc. In value terms, sales are up 15.2pc.

In the UK, our main export market, retail sales for the 12 weeks to April 19 show beef volumes up 16.2pc and spend up 15.3pc. Mince sales are up 27pc and steak sales are up 10.8pc.

While all this is good news, the spectre of Covid-19 hangs over the entire trade and with more than 560 confirmed cases reported at 10 meat processing facilities across the country, there is concern that production will be affected if it hasn’t already.

The HSE is reported to have sent “outbreak control teams” to each site in the hope of containing the spread of the virus.

In times of industrial crisis workers rely on their union to voice their concerns. I

Action:

The HSE has sent “outbreak control teams” to each meat factory affected by Covid-19 infections

am not sure if all killing-line and boning-hall workers are unionised, but I do know that Department staff are.

Department staff appear to be working normally at meat factories despite those 560 confirmed cases.

With 560 Covid cases confirmed, there has to be real concern that production will be affected